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Impact of Brexit on Migrant Workers in the UK (1)

Impact of Brexit on Migrant Workers in the
UK
Dr. Nancy Agnes, Head, Technical Operations, Tutorsindia info@ tutorsindia.com
Keywords: Migrant workers uk, Temporary
labours, research paper on migrant workers,
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dissertation on the migrant workers
I. INTRODUCTION
The raging deliberations with regards to
the membership of the UK to the European Union
(EU), a major campaign revolving around Brexit
was that it would provide the UK with increased
control over the number of immigrants who enter
the UK from various member states from the EU.
Many local individuals have voiced an
apprehension that greater immigration levels would
have made a negative impact on their jobs, quality
of life and wages [1]. For the past two decades, a
tremendous growth in immigration was observed
and a substantial part of this growth has been from
other EU nations. This is particularly true post
2004 and the accession of eight East European
nations (the A8). In the period ranging between
1995 and 2015, total immigrants belonging to other
member states from the EU living within the UK
had witnessed a triple growth from 0.9 million to
3.3 million [2]. The share EU nationals grew from
1.5% to 5.3% of the overall total population and
from 1.8% to 6.3% of the working age populace [2]
(adults falling in the age group of 16-64). The
national overall income on the whole has
experienced a growth owing to higher immigration
(increase in number of workers would increase the
GDP) and has been an advantage for immigrants
who have moved to the UK as they are
comparatively better off in the UK as compared to
the states they belonged. But it needs to
investigated whether this trend has been
economically detrimental to natural born citizens of
the UK? Also, a necessity has been felt to
understand the ramifications of Brexit on migrant
workers in the UK.
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Figure 1: Overall Immigration to the UK from
EU and Non-EU States
Source: Office for National Statistics [3]
II. IMPACT OF BREXIT ON MIGRANT
LABOUR IN THE UK
Migrant workers UK both from EU and
non-EU nations abound in the UK and they prove
to be quite significant for several industry sectors.
However, there have been concerns that Brexit
could curb the flow of migrant workers into the UK
[4]. Reduction in the labour market could result in
an undue hike in labour costs, in terms of
recruitment as well as wages, and prices which
1
could then be transferred to the end user while
having the potential for lowering profit margins or
sales volumes [4]. Modifications within the labour
market in the UK have been observed as per the
employment figures which indicated that
unemployment within the UK has been at a very
low rate since past 42 years (4.2% as on 15 th May,
2018) [5]. The rate of employment for people from
the EU was at its peak, but it was forecasted to drop
owing to Brexit and a clear indication of this trend
could already be witnessed when the workforce
from EU within the UK fell by 28,000 over a
period of the past 12 months [5]. This drop in the
number of migrants from the EU owing to higher
rates of employment and the number of EU
migrants going back to their home states tends to
pose a major challenge over a short-term as well as
long-term period for organizations within the UK,
as far as their human resource management
practices are concerned [6]. Challenges in the
short-term for organizations could emerge owing to
uncertainty of the possible conditions of
employment which could be enforced across EU
workers working in the UK, and the consequent
challenges of having the capability to satiate
manpower requirements in future with duly skilled
and qualified personnel [7]. To tackle these
challenges, it would need human resource
managers to evaluate existing as well as future
strategies for talent management.
also be on the necessary roles within
organizations and from the context of
Brexit, it would become necessary to
include what the necessary roles might be
and the manner in which an organization
would be able to develop other employees
to take-up such roles. Considering the
possible modifications within the macroenvironment, the talent management of an
organization would only need to evaluate
these, but also evaluate how its internal
context could satiate such challenges with
a view to sustain success. This would
require the organization to initiate a
scenario planning in order to make sure
that the response undertaken is highly
appropriate and proactive.
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III. CONCLUSION
The impact that Brexit would have
on the EU labour force within the UK
would present challenges that might be
beyond the control of organizations,
however organizations are in a position to
tackle such challenges by initiating certain
actions. This would involve a reassessment
of their strategies for talent management. It
would also include evaluating the
influence of more limiting policies of
immigration on their existing workforce
and the manner in which these can be
tackled by seeking alternative strategies
for recruitment within diverse markets.
The focus of talent management would
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REFERENCES
[1]
J. Wadsworth, S. Dhingra, G. Ottaviano, and J.
Van Reenen, “Brexit and the Impact of
Immigration on the UK,” CEP Brexit Anal., vol.
5, pp. 34–53, 2016, [Online]. Available:
http://library.kiet.re.kr/_MultiData/krms/00040/
427/BREXIT 2016.pdf#page=50.
[2]
United Nations, “International Migration 2019,”
2019.
[Online].
Available:
https://www.un.org/en/development/desa/popula
tion/migration/publications/migrationreport/doc
s/InternationalMigration2019_Report.pdf.
[3]
Office for National Statistics, “Migration
Statistics Quarterly Report: February 2016,”
2016.
https://www.ons.gov.uk/peoplepopulationandco
mmunity/populationandmigration/international
migration/bulletins/migrationstatisticsquarterlyr
eport/february2016#net-migration-to-the-uk.
[4]
Norton Rose Fulbright, “Immigration after
Brexit The new points-based system,” 2020.
https://www.nortonrosefulbright.com/en/knowle
dge/publications/2fd4c32b/immigration-afterbrexit.
[5]
The Guardian, “UK real wages rise, but drop in
EU workers could hurt NHS – as it happened,”
2018.
[6]
PWC, “Brexit – A key role for HR People and
organisation issues to consider following the EU
referendum,” 2016. https://www.pwc.co.uk/eureferendum/po-summary-of-brexit-and-hrrelated-issues-september-2016.pdf.
[7]
BBC, “Brexit: What you need to know about the
UK
leaving
the
EU,”
2020.
https://www.bbc.com/news/uk-politics32810887.
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